Increasing lifetime income

Providing an opportunity to grow your income throughout retirement

The power of increasing income

X5 AdvantageSM is designed to provide a stronger source of income than traditional withdrawal strategies. Not only will income be guaranteed for life, but your future income growth may be accelerated based on the unique features of the product.

With X5 Advantage, your Income Base – the amount used to calculate lifetime income – grows by 200% of your credited interest rate prior to lifetime income activation and 150% of your credited interest rate after activation. This means, when you activate lifetime income, your lifetime income withdrawal is based on a higher amount and your lifetime income payment has the potential to increase even after withdrawals begin. Below is a hypothetical example of how the product works before and during retirement.

Before retirement

Meet John

Age: 60
Premium: $100,000
Retirement Age: 70

John is planning to retire in 10 years, and he decided to allocate $100,000 of his retirement savings into the X5 Advantage.

John’s $100,000 Income Base grows by 200% of the credited interest rate over the first 10 years to $247,937, assuming he takes no withdrawals. If John decides to delay retirement (and not activate lifetime income), his Income Base would continue to grow by 200% of the credited interest rate at the end of each Strategy Term until he begins Lifetime Income Withdrawals.

After 10 years, John has the option to activate his lifetime income, which would be calculated based on a percentage of his Income Base of $247,937.

Hypothetical Assumptions: $100,000 premium, single life, issue age 60, 5-Year X5 Crediting Strategy for the first 10 years, 1-Year Point-to-Point Crediting Strategy for remaining years. Daily Benefit Base grows at 200% of the credited interest rate and no withdrawals until lifetime income activation and 150% of the credited interest rate thereafter. 5.00% Maximum Annual Withdrawal Percentage at Age 70. Assumes no withdrawals before activation, which will cause the values shown to be lower. Lifetime Income activation is only available on or after the 10th Contract Anniversary. Credited interest is hypothetical; actual results will differ. Crediting Strategies and their underlying indices are not guaranteed to produce positive results; you may experience years with no credited interest. See Key Terms and Definitions.

John's retirement years

Hypothetical Assumptions: $100,000 premium, single life, issue age 60, 5-Year X5 Crediting Strategy for the first 10 years, 1-Year Point-to-Point Crediting Strategy for remaining years. Daily Benefit Base grows at 200% of the credited interest rate with no withdrawals until lifetime income activation and 150% of the credited interest rate thereafter. 4.85% Maximum Annual Withdrawal Percentage at age 70. Assumes no withdrawals before activation, which will cause the values shown to be lower. Lifetime Income activation is only available on or after the 10th Contract Anniversary. Credited interest is hypothetical; actual results will differ. Crediting Strategies and their underlying indices are not guaranteed to produce positive results; you may experience years with no credited interest. See Key Terms and Definitions.

This is a hypothetical example to show how X5 Advantage can work. It provides a single example from a range of potential outcomes. It is not intended to be indicative of any X5 Advantage Annuity; your experience will differ. Please ask your Financial Professional or Agent for an illustration customized to your individual situation which includes a more detailed discussion of the range of potential outcomes based on various economic factors.

Age: 70
Initial Income: $12,025
Income at Age 80: $17,527

John retires and activates lifetime income at age 70. Based on his age, he can access 4.85% of his $247,937 Income Base, resulting in $12,025 of annual lifetime income. His initial $12,025 retirement income is guaranteed for life — and has the opportunity to continue growing.

Over the following years, John’s Income Base continues to grow by 150% of the credited interest rate at the end of each Strategy Term, which increases his lifetime income.

Even if his Contract Value reaches zero, his lifetime income has the potential to continue increasing as long as the interest earned in his Crediting Strategy is positive.

By age 80, John’s annual income grows to $17,527.

Additional information

Your Income Base is equal to your premium and grows as interest is credited to your Contract1. You may activate lifetime income any time on or after the 10th Contract Anniversary, and your annual income is calculated by multiplying the Income Base by a Maximum Annual Withdrawal Percentage dependent on your age at activation2. For more information on how lifetime income is calculated, see the Calculating Performance section.

1 Your Income Base is not your Contract Value and cannot be withdrawn partially or as a lump sum. If you take withdrawals before activating lifetime income (“before retirement”), your Income Base will be reduced by the same proportion as your withdrawal reduces your Contract Value, which will reduce your future income.

2 Regardless of the amount of interest credited to your Contract, starting on the 10th Contract Anniversary your Income Base will at least equal the Income Base Floor, which is equal to the Income Base Floor Percentage applied to your premium less all withdrawals that are not Lifetime Income Withdrawals. Please ask your financial professional or agent for the most recent Guaranteed Living Benefit Rate Sheet Flyer for the Income Base Floor applicable to your living benefit.

This material was prepared to support the marketing of X5 Advantage Annuity. This information is general in nature, may be subject to change and does not constitute legal, tax or accounting advice from any company, its employees, financial professionals or other representatives. Applicable laws and regulations are complex and subject to change. For advice concerning your situation, consult your attorney, financial professional, tax advisor, or accountant.

Tax-qualified plans such as IRAs, 401(k)s or 403(b) plans are tax deferred regardless of whether or not they are funded with an annuity. If you use X5 Advantage to fund a tax-qualified plan, you should know that an annuity does not provide any additional tax-deferred treatment of interest beyond the treatment by the tax-qualified plan itself. You should only use an index annuity in a tax qualified plan if you want to benefit from features other than tax deferral. If you intend to take Required Minimum Distributions (RMDs), please consult with a tax advisor concerning your particular circumstances. X5 Advantage may not be appropriate if you plan to make ongoing contributions.

Indices are not a permanent part of the contract and may be removed due to circumstances beyond the control of American General Life Insurance Company. Such circumstances include, but are not limited to, the discontinuation of an index, a change in the composition or calculation of an index, the inability to license the use of an index and the inability to hedge risks associated with the index. Special rules govern how assets in an index account with a discontinued index may be reallocated. These rules may differ by state. Please see the Owner Acknowledgment and Disclosure Statement for more information.

Genesis Development Group, Inc. has patents and patents pending that may cover elements of the products discussed in this document. This document does not convey any license or other rights in these patents.

Annuities are issued by American General Life Insurance Company (AGL), 2727-A Allen Parkway, Houston, Texas 77019. X5 Advantage Single Premium Deferred Fixed Index Annuity, Contract Number AG-808 (07/19). AGL is a member company of American International Group, Inc. (AIG). The underwriting risks, financial and contractual obligations and support functions associated with the annuities issued by AGL are its responsibility. Guarantees are backed by the claims-paying ability of AGL. AGL does not issue products in the state of New York. Annuities and riders may vary by state and are not available in all states.

Annexus and Genesis are not affiliated with AIG or its affiliates.